Seller’s warranties are legally binding and enforceable statements about a business offered for sale which the vendor confirms are true and correct. Warranties obligate the seller to bear any liabilities covered after the business purchase is completed. Warranties and what they cover are open to negotiation between the seller and the buyer. However, once included in the Sale and Purchase Agreement (SPA) and the sale completed, warranties, like all other provisions in the SPA, are irreversible. As such, great care needs to be taken by both the seller and the buyer in agreeing what is specified and guaranteed as warranties in SPA.
It is worth noting that the more favourable warranties the seller gives the more assured the buyer will be with the purchase as well as even generate a valuation premium for the business and how much he/she is willing to pay in the end to secure the purchase. The seller however needs to be circumspect and tread cautiously not to commit to unbearable potential liabilities – the stark realities of which will only dawn long after the completion, if they occur.« Back to Glossary Index
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In the early stages of such an important undertaking, it can be a bit of a moral maze: who do you trust?
Firm Gains gave me confidence with detailed advice and support. I would recommend their services to other entrepreneurs seeking to buy a business.« Back to Glossary Index Mr T Washington , Founder
I found it much easier to get my head around a business sale this way than talking to my accountant. You speak a language I understand!
Even though the whole process of selling seems daunting, I’ve got more confidence that I’m heading in the right direction.« Back to Glossary Index Mrs T Boothe , Founder
Thank you for your email and the excellent advice provided earlier this week. It was immensely helpful and has helped me to plan my future direction for the practice.
I would have no problem whatsoever in recommending your services in the future.« Back to Glossary Index Mr & Mrs Halldron , Co-Owners
Firm Gains were recommended to me and I was not disappointed. They were efficient, helpful and effective responding quickly to my request with all the facts that were needed to ensure a stress-free dialogue with our buyer.
What really helped was the advice over and above the valuation, which was immensely valuable and gave me the confidence to proceed. I would not hesitate in recommending them.« Back to Glossary Index Mr C Waite , Founder
We found the advice invaluable, which was clear and concise and felt your firm had a good handle on market trends and business sectors.
With also the backup of the secondary services, there was a feeling you had all bases covered if we wanted to proceed with our exit via Management Buy Out (‘MBO’).« Back to Glossary Index Mr D Wills , Director
Thank you for your advice. I was just about to sign up to the wrong kind of business agent for a company of our size, but read your post just in time.
I found a more serious partner, with experience in our industry and we’re already using the same language.« Back to Glossary Index Mr F Summerscale , Managing Director
We have been greatly impressed by the clear and impartial advice given to us by Firm Gains. After just an initial phone call we felt much better informed, with a new awareness of the many options available to us.
Firm gains understood our situation quickly and clearly and were anything but ‘pushy’. Refreshing compared to what we’d experienced before.« Back to Glossary Index Mr C Hutcheson , Managing Director